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There are several factors that contribute to the composition of the credit score. It may include the regularity of payments, the amount of loan you have and many more. There are some agencies that helps to calculate one's credit score based on the different factors.

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Your credit report

Your credit report is a summary of your credit history.

Your credit report is created when you borrow money or apply for credit for the first time. Lenders send information about your accounts to the credit bureaus, also known as credit reporting agencies.

Your credit score

Your credit score is a three-digit number that comes from the information in your credit report. It shows how well you manage credit and how risky it would be for a lender to lend you money.

Your credit score is calculated using a formula based on your credit report.

Note that you:

get points if you use your credit responsibly

lose points if you have trouble managing your credit

Your credit score will change over time as your credit report is updated.

How a credit score is calculated

It's impossible to know exactly how much your credit score will change based on the actions you take. Credit bureaus and lenders don't share the actual formulas they use to calculate credit scores.

Factors that may affect your credit score include:

how long you've had credit

how long each credit has been in your report

if you carry a balance on your credit cards

if you regularly miss payments

the amount of your outstanding debts

being close to, at or above your credit limit

the number of recent credit applications

the type of credit you're using

if your debts have been sent to a collection agency

any record of insolvency or bankruptcy

Lenders set their own guidelines on the minimum credit score you need for them to lend you money.

If you have a good credit score, you may be able to negotiate lower interest rates. However, when you order your credit score, it may be different from the score produced for a lender. This is because a lender may give more weight to certain information when calculating your credit score.

Who creates your credit report and credit score

There are two main credit bureaus in Canada:

These are private companies that collect, store and share information about how you use credit.

Equifax and TransUnion only collect information from creditors about your financial experiences in Canada.

Some financial institutions may be willing to recognize a credit history outside Canada if you ask them. This may involve extra steps. For example, you may request a copy of your credit report in the other country and meet with your local branch officer.

Who can see and use your credit report

Credit bureaus follow rules that define who can see your credit report and how they can use it.

Those allowed to see your credit report include:

banks, credit unions and other financial institutions

credit card companies

car leasing companies

retailers

mobile phone companies

insurance companies

governments

employers

landlords

These businesses or individuals use your credit report to help them make decisions about you.

These decisions could be to:

lend you money

collect a debt

consider you for rental housing

consider you for a job

provide you with insurance

offer you a promotion

offer you a credit increase

A lender or other organization may ask to "check your credit" or "pull your report". When they do so, they are asking to access your credit report at the credit bureau. This results in an inquiry in your credit report.

Lenders may be concerned if there are too many credit checks, or inquiries in your credit report.

It can seem like you're:

urgently seeking credit

trying to live beyond your means

Consent and credit checks

In general, you need to give permission, or your consent, for a business or individual to use your credit report.

In the following provinces a business or individual only needs to tell you that they are checking your credit report:

Nova Scotia

Prince Edward Island

Saskatchewan

Other provinces require written consent to check your credit report. When you sign an application for credit, you allow the lender to access your credit report. Your consent generally lets the lender use your credit report when you first apply for credit. They can also access your credit at any time afterward while your account is open.

In many cases, your consent also lets the lender share information about you with the credit bureaus. This is only the case if the lender approves your application.

Some provincial laws allow government representatives to see parts of your credit report without your consent. This includes judges and police.
Contact your provincial or territorial consumer affairs office for information on laws related to credit reporting.
What's included in your credit report

Your credit report contains personal, financial and credit history information. In general, it takes 30 to 90 days for information to be updated in your credit report.

Personal information in your credit report

Your credit report may contain your:

name

date of birth

current and previous addresses

current and previous telephone numbers

social insurance number

driver's licence number

passport number

current and previous employers

current and previous job titles

Financial information in your credit report

Your credit report may contain:

non-sufficient funds payments, or bad cheques

chequing and savings accounts closed "for cause" due to money owing or fraud committed

credit you use including credit cards, retail or store cards, lines of credit and loans

bankruptcy or a court decision against you that relates to credit

debts sent to collection agencies

inquiries from lenders and others who have requested your credit report in the past three years

registered items, such as a car lien, that allows the lender to seize it if you don't pay

remarks including consumer statements, fraud alerts and identity verification alerts

Your credit report contains factual information about your credit cards and loans, such as:

when you opened your account

how much you owe

if you make your payments on time

if you miss payments

if your debt has been transferred to a collection agency

if you go over your credit limit

personal information that is available in public records, such as a bankruptcy

Your credit report can also include chequing and savings accounts that are closed "for cause". These include accounts closed due to money owing or fraud committed by the account holder.

Other accounts included in a credit report

Your mobile phone and internet provider may report your accounts to your credit bureau. They can appear in your credit report, even though they aren't credit accounts.

Your mortgage information and your mortgage payment history may also appear in your credit report. The credit bureaus decides if they use this information when they determine your credit score

A home equity line of credit ( HELOC) that is added to your mortgage may be treated as part of your mortgage in your credit report. If your HELOC is a separate account from your mortgage, it is reported separately.

Why your credit history matters

It can affect your finances

Financial institutions look at your credit report and credit score to decide if they will lend you money. They also use them to determine how much interest they will charge you to borrow money.

If you have no credit history or a poor credit history, it could be harder for you to get a credit card, loan or mortgage. It could even affect your ability to rent a house or apartment or get hired for a job.

If you have good credit history, you may be able to get a lower interest rate on loans. This can save you a lot of money over time.

It can show signs of identity theft

You can also use your credit report to check for signs of identity theft. This is something you should do at least once a year for both credit bureaus. Look to make sure someone has not tried to open credit cards or other loans in your name.

Related links

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credit report; credit score; what is a credit report; what is a credit score; credit bureaus; credit check; credit checks; credit history; credit score check; credit reporting agencies; credit report check; credit agenies

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Who creates your credit report, who can see it and what it includes.

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This shows that the management of credit is very important in maintaining a good credit score.There are several measures that can be taken to maintain a good credit score such as paying your bills before the time it is due, always to spend in the credit card limit and do not go more than that.

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Highlights:

Credit scores are calculated using information in your credit report

Credit scores from 660 to 900 are generally considered good, very good, or excellent

There's no "magic number" to reach when it comes to receiving better loan rates and terms

It's an age-old question we get, and to answer it requires that we start with the basics: What is a credit score, anyway?

A credit score is a number, generally between 300 and 900, that helps determine your creditworthiness. Credit scores are calculated using information in your credit report, including your payment history; the amount of debt you have; and the length of your credit history.

Credit scores are intended to help lenders, creditors and others make fair decisions on whether or not to "take a risk" on someone. The risk might involve giving that person a loan (will they repay it?), offering a credit card (will they make timely payments?) or approving their apartment rental application (will they pay their rent?).
While your credit score is important, it is only one of several pieces of information an organization will typically use to determine your creditworthiness.

It's also important to remember that everyone's financial and credit situation is different, and there's no "magic number" to reach when it comes to receiving better loan rates and terms.

There are many different credit score models used today by lenders and other organizations. These scores all have the same goal: to predict a consumer's likelihood to pay their bills. There are some differences around how the various data elements on a credit report factor into the score calculations.

Although credit scoring models vary, generally, credit scores from 660 to 724 are considered good; 725 to 759 are considered very good; and 760 and up are considered excellent. Higher credit scores mean you have demonstrated responsible credit behaviour in the past, which may make potential lenders and creditors more confident about your ability to repay a debt when evaluating your request for credit.

Lenders generally see those with credit scores 660 and up as acceptable or lower-risk borrowers. Those with credit scores below 660 may be less likely to qualify for better loan terms. Those with lower scores who fall into the "poor" credit range (generally below 560) are more likely to have difficulty getting credit or qualifying for better loan terms.
How Do Your Actions Impact Credit Scores?
Here are some tried and true things to keep top of mind as you begin to establish - or maintain - good credit:

Pay your bills on time, every time. This doesn't just include credit cards - late or missed payments on other accounts, such as cell phones, may be reported to the credit bureaus, which may impact your credit scores. If you're having trouble paying a bill, contact the lender immediately. Don't skip payments, even if you're disputing a bill.

Keep your credit card balance well below the limit. A higher balance compared to your credit limit may impact your credit score.

Apply for credit sparingly. Applying for multiple credit accounts within a short time period may impact your credit score.

Check your credit reports regularly. Request a free copy of your credit report and check it to make sure your personal information is correct and there is no inaccurate or incomplete account information. If you find information you believe is inaccurate or incomplete, contact the lender or creditor. You can also file a dispute with the credit bureau that provided the report. Remember: checking your own credit report or credit score won't affect your credit scores.

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What Is A Good Credit Score? | Equifax Canada

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Highlights: Credit scores are calculated using information in your credit report Credit scores from 660 to 900 are generally considered good, very good, or excellent There's no "magic number" to reach when it comes to receiving better loan rates and terms It's an age-old question we get, and to answer it requires that we start with the basics: What is a credit score, anyway?

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It shows the different results that comes up with the good credit score and the bad credit score. These credit scores can affect the rates on which the people will get the loans. The people with good credit score will be able to get the good rate on their loans whereas the people with bad credit scores will get the higher rate on their loans.

It has a credit score numbers and shows its different categories. It shows the categories which reflect the good, bad or the excellent credit score. It is very useful to know the category of a credit score in which a person lies.

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Knowing where your credit lies on the credit score range is important. Depending on your score and ranking, you will receive lower interest rates and are more likely to be approved for loans and credit cards. There are two different credit reporting agencies in Canada, Equifax and Transunion. Each has its own approach to determining scores, but overall, they report similar results. Generally, a credit company or lender will look at both your credit score and your credit report to determine your creditworthiness. You are the only one who can improve your credit score, this makes understanding your credit score that much more important.

Note: if you're looking for ways to increase your credit rating, we have some programs that may help. Check them out here.

Canadian Credit Ratings and What They Mean

Lenders typically use this rating chart to determine where you stand in terms of your credit score and what rates you will receive.

Excellent (Scores 780+) - Individuals with a rate of 780 or over will enjoy the best interest rates on the market. They also will typically always be approved for a loan.

Very Good (Scores 779-720) - This is considered near perfect and individuals with a rate in this range will still enjoy some of the best rates available.

Good (Scores 719-680) - An individual who has a credit score that falls within this range has good credit and will typically have little to no trouble getting approved for the new credit.

Average (Scores 679-620) - While this is still a good range, individuals with this score will receive slightly higher interest rates than those with higher scores. According to Equifax, at the end of 2012, the average national credit score was 696.

Poor (Scores 619-580) - Scores in this range indicate that the individual is high risk. It may be difficult to obtain loans and if approved, they will be offered higher interest rates.

Very Poor (Scores 579- 500) - Scores in this range are rarely approved for anything, but credit can be repaired.

Terrible (less than 500) - Individuals whose credit scores are less than 500 will not get approved for new credit and should seek credit improvement help.

Factors That Affect Your Credit Score

There are 5 main factors that affect the calculation of your credit score. If you're interested in improving your credit score these are the areas that you should focus on.

1. History of Payments (35%) - This is determined by the payments they have made to lenders or creditors. This ultimately reflects on how frequent they pay their loans or bills on time. Anyone looking to improve their credit score should always make their payments on time, without fail.

2. Debt/ Credit Utilization (30%) - This shows the amount of outstanding debt a consumer has compared to the amount of available credit they have. For example, if you have a total credit limit of $5,000 and consistently carry a high balance, your credit score will be negatively affected. To improve your credit score, pay down your debt and make sure you need your balance to lower than 35% of your available credit.

3. Credit Length (15%) - This factor is straightforward, the longer a credit account has been open, the better it is for your credit score. If you're considering canceling a credit card, make sure you cancel a new one and keep the older ones open.

4. New Inquiries (10%) - Every time a potential lender or creditor pulls your credit, your credit score will take a small and temporary hit. If you apply for a lot of new credit within a short period of time, your credit score will drop and other creditors will be able to see that you've recently applied for a lot of credit which they may consider be a red flag.

5. Diversity (10%) - The more diversity in the credit accounts you have open, the better it is for your credit score. This shows potential creditors and lenders that you are a responsible borrower and can handle the responsibility that comes with having several different credit accounts.

How to Read Your Credit Report

Your credit report contains both personal information and financial information. If you have at least one credit account, you have both a credit report and a credit score. Your credit report illustrates who you are as a borrower, both the good and the bad. Checking it allows you to keep an eye on your accounts, make sure there are no errors, and even potentially prevent the damaging effects of fraud. Your credit report is the report card of your financial life and understanding how to read it can help you take control of your finances and be prepared for any of your future credit needs.
Check out our infographic for even more information on credit scores in Canada.
Your Credit Report Contains The Following Information

Personal Information

Credit accounts and their transaction, including credit cards (retail as well), personal loans, car loans, lines of credit

Cell phone and internet accounts

Credit requests from creditors, lenders, landlords or employers

Bankruptcy, consumer proposals, consolidation, and debt management programs

Legal judgements

Credit accounts in collections

Closed accounts because of fraud committed by the account holder

Fraud alerts

Identity verification

Credit Information
Installment (I)
Each of your credit accounts will be given a rating that includes a letter and a number.
Open (O)
Accounts that receive an "I" are installment style accounts that are paid off in predetermined fixed amounts. For example, a car loan.
Revolving (R)
Accounts that receive an "O" are open, which means they can be used up to a preset limit. An example of an open credit account is a line of credit.
Mortgage (M)
Accounts that receive an "R" are considered revolving credit because your payments change based on how much of your limit you borrow. A credit card would receive an "R".

Depending on the credit bureau you pull your report from, your mortgage may or may not show up. If it does, it will be represented by an "M".

0 = Account is too new to rate

1 = Account has been paid off as agreed

2 = Late by 31-59 days

3 = Late by 60-89 days

4= Late by 90-119 days

5 = Late by more than 120 days

6 = Account not used

7 = Account is associated with consolidation, consumer proposal, or debt management program.

8= Account associated with a repossession

9= Account is in collections or bankruptcy

Did you know that bad credit can affect your daily life? Learn more here.

The good news is that the health of your credit score is completely in your hands and you have the power to improve it simply through the way you manage your credit products. Responsible use of your credit cards and loans, over time, will greatly improve your credit score and therefore allow you to qualify for other larger loans, for example, a mortgage, in the future.

Want to learn more about credit scores? Visit our learning center. If you're looking for a way to start building a better credit rating, consider these services.

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What Your Credit Score Range Really Means | Loans Canada

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Knowing where your credit lies on the credit score range is important. Depending on your score and ranking, you will receive lower interest rates and are more likely to be approved for loans and credit cards. There are two different credit reporting agencies in Canada, Equifax and Transunion.

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It is very useful in knowing ones credit score. It shows why the credit score is important and where it is used in different aspects. It helps assisting the public in getting their credit score report and they also can see their credit scores which is very helpful in every aspect of our purchasing something.

It is very helpful if the people wants to know their credit score. It is very useful to get the credit report as well. So, it is very important if someone wants to buy something and wanted to know that if they would be able to buy it or not from the way of credit rating.

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TransUnion is a global information & insights company that makes trust possible, ensuring consumers are reliably & safely represented in the marketplace.

We believe consumers and organizations should be able to transact with confidence and achieve great things.

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Credit Report, Credit Score & Credit Rating | TransUnion

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TransUnion is a global information & insights company that makes trust possible, ensuring consumers are reliably & safely represented in the marketplace. We believe consumers and organizations should be able to transact with confidence and achieve great things.

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It is considered to be very important to check our credit score from time to time because We need to maintain it at a good position so that we would never got denied for any of the loans or the things that need to get our credit score. So, we should check our credit score from time to time.

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Check Your Credit Score for FREE in Canada 🇨🇦

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It is very useful to have a good credit score at all the times. We need credit for a lot of purchases, so the credit score matters a lot. There are a numerous ways to build up your credit score that includes paying your bills on time, enough utilization of a credit card so that you have some credit score maintained and paying it before the due date.

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IMPROVE YOUR CREDIT SCORE IN CANADA | EASY STEPS TO BUILD CREDIT | Credit Card Guide Chapter 4

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It is very useful to know that how our credit score gets calculated. There are several factors that lead to the composition of our credit score like the payment history, the amount of debt that you owe and some more. So, we need to take care of all the factors to have a great credit score and to get approved for every loan that we are applying for.

This video contains the factors that make our credit score. So, by knowing these factors and keep taking care of them we can make a good credit score at every time.

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INCREASE Your Credit Score in 30 Days | How to Increase Your Credit Score

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It is very useful to keep knowing where we are spending and how much are we spending from our credit, as we have to pay that back before its due date to have a good credit score. If we have a good credit score then we can get approved of anything that need to have the good credit score.

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Credit Score Tips & Advice Canada - Top Things You Need to Know About Your Credit Score

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It is very important thing to know that what is our rank in the credit score numbers.

This image shows the different numbers for credit scores and tells whether it is good, bad or excellent to be in it.

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Your credit score is used by lender to know your creditworthiness and to decide whether they should lend you money or not. In Canada, credit score range from 300 to 900 points. As per Trans Union, a Canadian credit report agency, 650 is the magic middle number - a score above 650 will likely qualify a lender for a standard loan, while a score below it may make it difficult for borrowers to receive a new credit. In general practice, if your credit score is more than 700, it demonstrates to the lender that you can use creditworthiness and he should feel comfortable in lending you money. On the other hand, the lower credit worthiness check demonstrates that you have mismanaged your credit.

Lenders generally use credit scores to set your interest rate and credit limit. If you have a high credit score, you may be able to get loans at lower interest rate and similarly, you might have to pay higher interest on loan, if your credit score is poor.
How Credit Score is Built?
Credit score is built on the basis of creditworthiness analysis prepared by credit reporting agencies in Canada. These are the private agencies engaged in collecting, storing and sharing information about how you use credit. A credit report agency is also known as a credit bureau or just a bureau. In Canada, there are two main credit reporting agencies: Equifax Canada and TransUnion Canada.

You can request both agencies to get one free copy of your credit report each year. You can also look up to your credit score on paying a fraction of amount as fee to the credit report agency. It is a sound practice to check creditworthiness of a company annually to make sure there are no repercussions in it.

If your creditworthiness calculator score varies from 600 to 900 points, you may get a loan from prime lenders like major banks. If your credit score is 600 or less, you may still get loan from private lenders but rates will be higher than normal interest rate.
Your Credit Score and Mortgage
Your credit score affects the decision of lender to lend you a loan. It also helps you to know from where you can borrow. Lender also uses it to decide your interest rate on mortgage. A poor credit score may mean you will pay higher interest, offered a smaller credit limit or your loan application simply rejected outright.

If your credit score varies from 600 to 900 points, you may get a loan from prime lenders like major banks. If your credit score is 600 or less, you may still get loan from private lenders but rates will be higher than normal interest rate.
Tips to Boost your Credit Score

The best way to boost a good your creditworthiness factors is to repay that credit on time all the time. One should set up automated payments for monthly credit card, utility, rent, mortgage and other bills.

One must pay bills on time as delinquent payments and collections have a negative impact on a credit score.

One should keep balances of credit cards low and apply for new accounts only as needed.

A missed mortgage payment has huge impact on your credit rating. Some lenders can be very slow in informing credit agencies when debt has been repaid. One should check for credit report carefully to make sure that it is accurate and up to date.

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RateTrade | Check Credit Score in Canada | Credit Worthiness Analysis

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Your credit score is used by lender to know your creditworthiness and to decide whether they should lend you money or not. In Canada, credit score range from 300 to 900 points.

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It is very good to know that how our credit score gets calculated.

This image shows us the several factors that are being used to calculate the credit score.

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Do you wonder what a credit score is and how your credit score is calculated? Well wonder no more.

Here we'll answer some of the questions we hear most often, including:

What is a Credit Report?

A credit report is a summary of how you pay your financial obligations. It contains information based on what you have done in the past. Lenders use it to verify information about you, see your borrowing activity and find out about your repayment history. Some of the information on your credit report is used to determine your credit score.

What is a Credit Score?

Your credit score is a number, based on specific information on your credit report. Your credit score is used by lenders to predict the likelihood that you will repay future debt. Your credit score changes frequently and it is up to each lender how they interpret and use your credit score.

What Does a Credit Score Mean?

A credit score is a number which can range from a low near 300 to a high of 850 or 900 (depending on which company is calculating the score).

If someone's score is 580, it means that "580 people out of 850 are likely to repay their debt." If someone's score is 780, it means that "780 people out of 850 are likely to repay their debt."

The number represents the odds that a lender will get the money back that they lend someone. The higher the number, the better the odds.

5 Key Factors in Calculating and Determining Your Credit Score

A number of specific factors go into determining a credit score. These factors are based on what someone does or doesn't do with the credit they already have available. That is why the score changes frequently. Here are the 5 factors that determine your credit score:

1. Payment History (35%)

Your payment history is the most important factor in your credit score. Creditors want to know if you are going to pay them back the money you are asking to borrow from them.

Your payment history reflects all the payments you make to all of your consumer debts. Creditors report every time you make a payment to your credit cards, line of credit, car loan, personal loan, student loan, cell phone on contract and any other regular debts you have. Mortgage payments are not reflected on a credit report, but almost everything else is.

The payment information that is reported shows separately for each account you have. It shows whether or not you've paid as agreed, it shows if it is a deferred payment plan or if payments aren't currently required (like for a student loan), how many past due payments you have, how often your payments have been late, if you have any debts in collections and if you have any negative information in the public records portion of your credit report (bankruptcy, judgments, liens, etc.).

Your score also reflects how recent any late payments or collection activities are. The older the information gets, the less it will impact your score.

2. How Much is Owed (30%)

When you apply for credit, how much you already owe really matters to a lender. Your current payments will determine if you can manage any more payments in your budget for the additional money you borrow.

While you might think that you can handle more credit, statistically speaking, there's a chance you might not be able to. If you are close to maxing out all of your credit cards or your line of credit, it means that you are a higher risk to lenders. Higher risk to a lender means that there's a greater chance that you won't keep up with your payments.

Another aspect of this part of your credit score reflects how much of your available credit limits you use on an ongoing basis. If you usually use 60% or more of your credit limit on a credit card or line of credit, it will impact your credit score negatively. This is because if something were to happen to your income and you owe a lot of money, you would find yourself struggling to keep up with payments.

3. Length of Credit History (15%)

If you have had credit available to you for a long time, your credit report should provide an accurate picture of how you use credit and if you had one, how you got through a difficult time. For someone who has not used credit for very long time, it is difficult to tell if they really know how to use credit responsibly.

Good or bad, most information will be automatically removed from someone's credit report after 6 - 7 years, so the only way to keep a credit report active, is to use credit, at least very minimally, on an ongoing basis.

Time is needed to get a true picture of how responsible someone is with credit. This is why the length of your credit history is the third most important factor in your credit score calculation.

Your score will reflect how long it has been since you first obtained credit, how long each item on your credit report has been reporting and whether or not you are actively using credit right now.

If you have recently obtained credit for the first time, your credit score will not be very strong. However, if you have been using credit responsibly for many years, this factor can work in your favour.

If you have been involved in a bankruptcy, consumer proposal, orderly payment of debt or debt management program, your credit history will essentially restart whenever you complete your program.

4. New Credit Applications (10%)

Frequently applying for new credit can signal financial difficulty. In the industry it's called "credit shopping" and it does not reflect favourably on someone's credit score.

It is not unreasonable for a creditor to worry about how often someone applies for new/more credit because the more new credit someone gets, the harder it becomes for them to keep up with all of their payments.

This part of your credit score takes into account the number of times your credit has been checked in the last 5 years, the number of credit accounts you have recently opened, how much time has passed since you opened any new accounts and the time since your most recent credit inquiries. This part of your credit score will also evaluate whether or not you are re-establishing your credit history following past payment problems.

5. Types of Credit Used (10%)

Even though this part of your credit score makes up 10% of the total, it is the least significant part, unless you don't have much other information on your credit report.

Different types of credit shed light on how you handle your money overall. For example, deferred interest or payment plans can indicate that you aren't able to save up for purchases ahead of time. Consolidation loans mean that you've had difficulty paying your debts in the past. A line of credit is a revolving form of credit, like a credit card, and it's easier to get into trouble with a revolving form of credit than with an installment loan where you make payments for a set amount of years and then it's paid in full.

If you focus on managing your finances wisely and only apply for credit as you need it, this part of your score should take care of itself.

Other Factors

The factors outlined above are calculated slightly differently by the two credit bureau companies in Canada, Equifax and TransUnion, and it is up to each lender to decide how they interpret and use credit scores and credit report information.

As such, the factors above are not the only things that are important when you apply for credit. Lenders will also consider factors such as your income, your assets, how long you have been at your job and the reason why you are applying for credit.

Is Knowing Your Own Credit Score Important?

Some people really want to know what their credit score is. However, it changes often, so be prepared. Also, keep in mind that your credit score is intended to reflect the likelihood that you will repay any money that you borrow. Most people don't need a score to know if they will pay themselves back the money they lend themselves.... Instead, focus on managing your money carefully with a budget and only apply for credit that you need; your score will take care of itself.

Getting a copy of your credit report, however, is important and can be done for free. It will allow you to spot concerns, inaccuracies, or potential fraud.

If You Want to Get Your Credit Score

To find out what your credit score is, you can request it from Equifax and Trans Union, for a fee. If you don't want to pay for it, you can try this credit score estimator to get a rough idea of what your credit score might be.

How to Improve Your Credit Score

The best things you can do to improve your credit score are to manage your money wisely using a realistic spending plan and to deal with your debts. Despite what some might claim, there is no quick-fix for factual but negative information on your credit report. Time and living within your means are what it takes to improve your credit rating. However, in some situations there may be a couple of things you can do to improve your score more quickly.

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For more detailed information about credit reporting and what everything on a credit report printout means, take a look at this easy-to-read government resource, " Understanding Your Credit Report and Credit Score."

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What is a Credit Score & How is a Credit Score Calculated in Canada?

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Do you wonder what a credit score is and how your credit score is calculated? Well wonder no more. Here we'll answer some of the questions we hear most often, including: A credit report is a summary of how you pay your financial obligations. It contains information based on what you have done in the past.

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1. It was very great to know that our credit score is made up of a several factors that need to be taken care of to get a good credit score.

2. This topic is very helpful in real life as we always need a good credit score when we wanted to buy something that needs to check our credit score.

3. I would like to recommend that we should always do our payments on time to have a good credit score.